What to Expect in Markets This Week: A Post-Fed Inflation Reading and Earnings From a Hot Memory Maker

• The April PCE price index rose 3.8% year-over-year, well above the Fed's 2% target and the largest increase in three years
• Micron Technology's market capitalization has surged amid strong demand for memory components used in AI data centers
• Major indexes finished the prior week higher despite Fed signaling delayed rate cuts, boosted by optimism over U.S.-Iran reconciliation potentially restoring Strait of Hormuz shipping

Market Summary: PCE Inflation Data and Key Earnings Ahead

Key Economic Indicator

The Personal Consumption Expenditures (PCE) price index for May will be released Thursday, June 25 at 8:30 a.m. ET. This is the Federal Reserve's preferred inflation measure and the first major inflation data since the Fed signaled only a 0.25 percentage point rate cut before 2027. April's PCE showed a 3.8% year-over-year increase—well above the Fed's 2% target and the largest gain in three years. May's reading may exceed April's level based on other inflation indices.

Major Earnings Reports

Micron Technology (MU) reports fiscal Q3 results Wednesday, June 24 at 4:30 p.m. ET. The memory-chip maker, whose products power AI data centers, has seen significant market capitalization growth amid memory component shortages.

Other notable earnings include:

• Carnival Corp. (CCL) - Tuesday: Q2 results; previously delivered strong December results despite U.S.-Iran conflict pressuring fuel costs
• FedEx Corp. (FDX) - Tuesday, 5 p.m. ET: Fiscal Q4 results after recent spin-off of FedEx Freight (FXFT)
• BlackBerry (BB) - Thursday, 8 a.m. ET: Fiscal Q1 results; stock rallied on Nvidia partnership and QNX business demand
• Darden Restaurants (DRI) - Thursday: Q4 results; operator of Olive Garden and LongHorn Steakhouse targeting higher-earning consumers

Market Context

Major U.S. indices finished the prior week higher despite initial weakness following the Fed's hawkish rate outlook. Improved U.S.-Iran relations boosted sentiment around potential restored shipping flows through the Strait of Hormuz.

Interest rates have remained unchanged at their current level as the Fed maintains restrictive policy to combat persistent inflation.